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Kroger hanging tough in competitive market; excited about the future

As Kroger Co. continues to do battle with Amazon and Walmart, along with other food retailers; the nation’s largest supermarket saw fourth quarter profits of $854 million, up 69 percent from a year ago. However, gross margins declined for the Cincinnati-based retailer.krolog

Chairman and Chief Executive Officer Rodney McMullen was encouraged however, particularly with the recently launched Restock Kroger initiative. “We launched Restock Kroger in the fall of 2017 and finished the year with positive momentum in our sales and overall business,” said McMullen. “Customers are letting us know that they see, feel and appreciate our efforts to redefine the customer experience — and they are rewarding us with growing loyalty. This is the cycle that creates long-term value for shareholders.

“As we embark on our first full year of Restock Kroger, we are encouraged at the start of 2018 and confident in our ability to deliver on both our plan for the year and our long-term vision to serve America through food inspiration and uplift,” he added.

Part of “redefining the customer experience” included increased dedication toward natural and organic sales. Kroger reported that its natural and organic sales reached 16.7 billion, which included $2 billion in its Simple Truth sales.

The retailer also continued its emphasis on e-commerce, opening its 1,000 ClickList store. Additionally, Kroger now offers nearly 900 home-delivery locations, and more than 40 million households now have access to online groceries.